AFRICANGLOBE – Africa’s richest man Aliko Dangote is selling a stake in his cement company to a sovereign wealth fund owned by the government of Dubai, United Arab Emirates.
According to a report by the Financial Times, the Investment Corporation of Dubai (ICD) will invest $300 million in Dangote Cement, West Africa’s largest company, for a minority stake. Mohammed Al-Shaibani, CEO of the UAE-based company is expected to sign the deal on Monday with Aliko Dangote. ICD, which was established in 2006, owns stakes in Emirates Group, Dubai World Trade Center and the Emirates National Oil Company.
It is not yet clear whether the ICD will be acquiring the stake at a discount or premium to Dangote Cement’s current market price. Dangote Cement, which is listed on the Nigerian Stock Exchange, has a current market cap of $24.5 billion. At its current value, ICD’s $300 million injection would give it a 1.28% stake approximately.
This is the second time a Government-owned investment entity will be investing significantly in the Nigerian cement maker. Last year, the Public Investment Corporation of South Africa bought a $293 million stake in the company.
Dangote Cement is majority owned by Aliko Dangote, Africa’s richest man with a fortune estimated by at $24.4 billion. The company has cement manufacturing operations in 12 other African countries outside Nigeria, and is working on expanding its production capacity from 35 million tons a year to more than 60 million tons a year by 2018.
By: Mfonobong Nsehe